a)If Cisco has a monopoly in the server market, what efficiency condition is violated?

b. Would the regulation of Cisco and the elimination of Cisco's profit lead to a more efficient allocation of resources?

c. Will all members of society benefit?

a. Market efficiency refers to a situation where the cost of goods and services within a market is based on all the available market information. The condition that is violated when Cisco has a monopoly power is competition. The failure to have competition within a market reduces the market response to changes in factors. For a market to be efficient, it has to have many suppliers.

b. Yes, Cisco's regulation and the elimination of the firm's returns will lead to a more efficient allocation of resources. This is because there will be more competition; thus, resources within the economy will be distributed fairly and equally with the competition since no firm or individual controls the product's supply.

C. Yes, when there is an efficient allocation of resources within the economy, all society members will benefit. This is because it will increase economic productivity, which increases the investment rate within the economy. This leads to economic growth, which is an advantage to all people within the community.g